Business Insider, March 30, 2022, A student-loan company just got hit with a $1 million penalty for ‘breaking the law’ by lying to borrowers about loan forgiveness, Biden’s top consumer watchdog says
On Wednesday, the Consumer Financial Protection Bureau (CFPB) sanctioned Edfinancial Services for “making deceptive statements to student loan borrowers and misrepresenting their forgiveness and repayment options to them,” according to the press release.
Specifically, the bureau said Edfinancial did not provide accurate information to borrowers of the privately held Federal Family Education Loan (FFEL) program about their eligibility for the Public Service Loan Forgiveness (PSLF) program — a program that forgives student debt for public servants after ten years, and recently expanded its eligibility to include FFEL borrowers through a temporary waiver.
